Jushi Group Co. Ltd., located in the Tongxiang City Economic Zone in Zhejiang Province, East China, has been leading the country in production and export of glass fibre for five years.
Starting from …
Jushi Group Co. Ltd., located in the Tongxiang City Economic Zone in Zhejiang Province, East China, has been leading the country in production and export of glass fibre for five years. Starting from a small workshop with an asset of only CNY 190, 000, Jushi has been growing strongly and has become a large modern glass fibre enterprise with assets amounting to CNY 400 million through capital operation. Jushi was called Tongxiang Glass Fiber Plant in 1984, with assets of only CNY 195,000, and in the 1980s, was converted into a joint stock company called the Zhenshi Co Ltd. The Jushi Group was founded in 1993 with Zhenshi holding a 41.67% stake, in cooperation with financial and power departments of Tongxiang City. In 1998, it joined hands with the Zhongxin Group, the Yonglian Group and the China Export Company of Building Materials to set up the China Chemical Building Materials Co. Ltd., which was listed on the Shanghai Stock Market in March 1999. Since then, Jushi has become a subsidiary of the listed China Chemical Building Materials. The successful IPO has helped Jushi raise more money and get discount loans from the state in building a 16,000-ton alkali-free tank furnace fibre-drawing production line, the largest of its kind in China, equipped with the most advanced equipment and technology. The production line, with a total investment of 200 million CNY, started production toward the end of 2000. Currently, Jushi boasts a production capacity of 3,000 tons of electronic class glassfibre yarn, a top-notch product in the field, indicating that the company has stretched itself from reinforced materials industry to IT industry. The group succeeded in purchasing the Jiangxi Jiujiang Glass Fiber Plant at a low cost toward the end of 2000. It injected CNY 45 million into the plant to expand its production scale from 6,000 to 20,000 tons. The per-ton investment cost was only one third of building a new production line. Jushi“s output of glass fibre and products was 35,000 tons in 2000, accounting for 17.5% of the national total, and export was 17,000 tons, 34% of the total. It secured an agreement with a US financial company on 16 June 2001 on borrowing more than US$ 10 million, indicating the company“s first step into the international capital market. At present, Jushi is the third largest supplier of glass fibre to the US. To go international and build itself into a transnational glass fibre enterprise is the next development target of the Jushi group. It plans to bring its output of glass fibre to 100,000 tons by 2003, edging into the top ten glass fibre producers in the world and top five in Asia, and to further increase its output to 150,000 tons by 2005 to edge into the top five producers in the world and top three in Asia. To achieve the targets, Jushi has begun to court international capital and is planning overseas acquisition and establishment of plants and listing on foreign stock markets, in order to establish a global development, production and trade network. Since its founding, Jushi has launched 12 large-scale technical transformation projects. Its output of glass fibre has increased about 71% to exceed 60,000 tons this year as compared to last year, reaching a 30% market share, and increasing export 76%, accounting for more than 40% of the total of the same products. Its output value topped CNY 600 million, and profits and taxes exceeded CNY 150 million.